School district sells bonds
to pay for improvements
BY DAVE BENJAMIN
Staff Writer
ENGLISHTOWN — The Manalapan-Englishtown Regional School District has sold $34.5 million in bonds to CitiGroup Global Markets.
The transaction, which took place on Dec. 16, had a net interest rate of 4.631127 percent.
On Sept. 30, voters approved a $48.8 million referendum to fund construction projects in the K-8 school system. The state is expected to pay $14.3 million of the total cost. The district sold bonds to cover the remainder of the cost.
"The award was most advantageous to the taxpayers," said Superintendent of Schools Maureen Lally. "The project can now move ahead to construction this summer."
Bond counsel John L. Kraft conducted the sale of the bonds, Lally said.
Four bids were received: CitiGroup Global Markets, Commerce Capital Markets, Merrill Lynch and Wachovia Bank, and National Association. The proposals were reviewed by Walter Brasch, Board of Education auditor; Robert Butler, financial adviser; and Joseph Passiment, district business administrator.
Following the review, Passiment issued a certificate to CitiGroup Global Markets.
School board President James Mumolie congratulated the professionals for promptly making the sale and said 4.631127 percent is a very good rate over the 25-year life of the bonds.
The money will be invested by the district while final plans are put in place on the initial phase of construction.
The bulk of the referendum work will be completed at the Manalapan Englishtown Middle School ($28.7 million) where 22 new classrooms will be constructed, in addition to other improvements.
At the Clark Mills School, $13.3 million will be spent to construct a wing that will house all of the district’s kindergarten pupils and an early childhood center for all preschool handicapped pupils. Moving the kindergartners to Clark Mills will open classroom space in each K-3 school, according to district administrators.
Additionally, plans call for the replacement of windows at Taylor Mills School, Clark Mills; Milford Brook School; and Pine Brook School.
Roof replacements at Taylor Mills, Clark Mills and Lafayette Mills School are also included on the list, and there is a need to replace heating ventilation and air conditioning systems at Taylor Mills, Pine Brook and Lafayette Mills.
At Lafayette Mills the total construction costs will be $1.8 million. Pine Brook will see $1.7 million in renovations.
At Milford Brook, renovations will total $431,825; and at Taylor Mills, the total cost for improvements will be $2.5 million.
Administrators expect an additional 722 students to be enrolled in the regional district by 2007.